Permits, Not Starts, Tell Story of Housing

Construction of new homes fell in April amid a big drop in the volatile apartment sector. But building permits hit their highest levels in nearly five years, a sign that the housing rebound—while choppy—still appears to be on course.

Housing starts fell 16.5% in April to a seasonally adjusted annual rate of 853,000 units, the lowest level since last November but still up 36% from the level of a year earlier.